Study assesses parcel shippers' vulnerability to price increases

Wednesday, January 23, 2013

A new study by the global supply chain information and technology company Data2Logistics assesses the shippers’ exposure, impact, and options to mitigate avoidable supply chain transportation costs by determining what portion of their parcel expenditure is exposed to pricing increases.
Data2Logistics’ professional services group data-mined shippers’ historic supply chain flows to determine service efficiencies and associated cost savings, in light of this years’ air and ground parcel price increases. The objective of the analysis, the company said, was to optimize appropriate service levels per shipment and enhance transportation transparency and efficiency, while minimizing cost.
“With the new year, announcements were made of higher parcel shipping rates by the major carriers, at a time when companies are faced with demand for supply chain cost reduction to offset tightening product profit margins,” said Leif Holm-Andersen, Data2Logistics’ executive director of professional services, in a statement. “Data2Logistics identifies shippers’ options to reduce these costs to offset rate increases, optimize freight transportation by reducing unnecessary shipping spend, and ensuring companies are being charged their correct rates via business intelligence data mining. Ultimately, the goal is improvements in shippers’ cost reduction and in relationships with their carriers.”
The study can be obtained by contacting Holm-Andersen at (516) 807-0256 or by email.